Lender submits credit bid of $20M for Bradenton’s DeSoto Square mall property
Romspen U.S. Master Mortgage LP, the lender that brought a foreclosure suit against the owners of DeSoto Square mall in 2018, was the high bidder in an online bankruptcy auction Oct. 12-14.
Romspen offered a credit bid of $20 million, according to papers filed Tuesday with the U.S. bankruptcy Court in Brooklyn, New York.
A credit bid is the right of a secured creditor under the bankruptcy code to use its secured claim against a debtor as currency in an auction.
The owners of the mall had defaulted on a loan of the payment of $21,889,109 at the time that Romspen foreclosed on the mall property.
The owners of the mall purchased the property in 2017 for $22.85 million and announced a series of planned improvements, most of which failed to materialize.
The mall, located at 303 301 Blvd., E., Bradenton, opened in 1973 and closed its doors in April 2021.
The second-highest bid submitted during the mall bankruptcy auction was $18.5 million by Amzak Capital Management. There were 10 bidders who attended and took part in the auction, according to court papers.
At a hearing set for Wednesday at the New York bankruptcy court, Rompsen will have the opportunity to approve or reject bids. Should it reject the bids, a foreclosure sale would be held Dec. 2, presided over by Manatee Circuit Judge Charles Sniffen.
Reporter Jessica DeLeon contributed to this story.
This story was originally published October 19, 2021 at 5:21 PM.
